Nurse Mortgage

“We tailor our advice to you and manage everything with the lender from that initial application all the way through to your mortgage offer. Then we work with your solicitors right through to completion.”

Mike Haupt – Mortgage Adviser

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Mortgage for Nurses

Mike Haupt talks us through the mortgage process for nurses.

How do mortgages for nurses work?

There is no specific mortgage product aimed solely at nurses, but some lenders will look at things differently. You might be eligible for a professional mortgage in certain circumstances.

The challenges that come with mortgages for nurses are around the complexity of your income. It’s the same for a lot of NHS staff, who have a basic salary plus overtime enhancements which can be unpredictable. Your income may fluctuate depending on shift patterns.

That’s where lenders can get a little bit nervous. It’s really important that we really understand the income of a nurse or NHS member staff and really look at the options. That way we can provide the most suitable mortgage for that person.

What are the eligibility criteria for nurses looking to obtain a mortgage?

There’s no major difference. It’s very similar to all other types of mortgage applicants, in that it will come down to affordability criteria. We will look at your income, your credit record and the property itself.

For nurses, it’s very much around understanding the income and how that could be interpreted and used by a lender.

Are there any specific lenders or institutions that offer mortgages to nurses?

No, but that’s no bad thing. A lot of lenders want to work with and lend to nurses. The really important bit is to understand how that lender is going to interpret your income. We can help position it to them.

Some lenders will only take a certain percentage of overtime or enhancements – which could ultimately impact the amount of money you could borrow. The first thing we would do is have a really good conversation with you around your income and future plans. Once I really understand that, I can position your mortgage with a suitable lender for your circumstances.

What documentation or proof is required to apply for a mortgage as a nurse?

It’s really straightforward – we just need your payslips. Typically we would ask for three months’ pay slips and perhaps six months’ depending on the circumstances.

What are the typical interest rates for a mortgage as a nurse in the UK?

We are here in December 2023, and over the last 18 months we’ve seen huge changes in interest rates from ultra lows to where we are at the moment. Things are starting to drop back down again – so it will vary so much depending on when you’re looking to buy or remortgage.

But as a nurse you will be able to pick and choose from the available rates that apply to your circumstances at the time of your application.

Are there any limitations or restrictions on the type of property that can be purchased as a nurse?

No. If you have a non-standard property, listen to our previous podcasts for details on those.

We may need to look at a specialist lender, depending on the details.

But generally speaking there are no rules around what nurses can and can’t buy. It’s our job to make sure that your property fits a lender’s criteria.

Can you explain how income verification works for nurses applying for a mortgage?

Most nurses will have a basic monthly salary, like anybody else who’s employed. It’s around enhancements and overtime where some lenders can get a little bit nervous.

If you’re working weekends, night shifts or unsocial hours, you’ll get an enhancement. Your shift pattern can vary month to month, so a lender will be looking for a history over three months or maybe six months to really understand whether your overtime or enhancements are consistent.

They want to know whether these allowances are going to apply to your income moving forward. It’s about checking that the affordability for your mortgage is not impacted.

I would sit down with you and talk through your income to understand it. I’ll look at what’s going to happen in future and what’s happened previously, to make sure we choose the right lender for your circumstances.

What challenges or obstacles might nurses face when applying for a mortgage?

It follows on from what we’ve just been talking about. It’s generally around income. Unfortunately a lot of banks won’t have the time to really get to know the applicant and their income history. You can therefore get a negative response when you apply direct, as a lender may look at it in the wrong way.

That’s why it’s really important to talk to a mortgage broker. We’ve got lots of experience in dealing with NHS staff and can really understand your income structure and position that with the lender correctly.

Is it possible for newly qualified nurses to obtain a mortgage?

Yes, absolutely. We need to look at whether you have started that job or are due to start, and whether a standard mortgage or potentially a professional mortgage is right for you.

It’s about understanding your circumstances in full so that we can position that mortgage with the right lender for you.

Are there any additional costs or fees associated with a mortgage that nurses should be aware of?

No, there are just the typical fees – conveyancers, valuations, potentially broker fees and perhaps estate agents’ fees, depending on what you’re looking to do. There are no specific, additional fees that a nurse would need to pay.

Does It Cost For An Initial Chat?

Please don’t be afraid to pick up the telephone. Contact us with any questions or any conversations you want to have. There’s no commitment, there’s no silly questions. I’m here to try and help put your mind at ease, so let’s have a conversation and answer your questions.

Can self-employed nurses apply for a mortgage?

Yes. You would need two years’ history of your self-employment to position that with a lender.

It also depends on what you mean by self-employed, because there are different varieties within the NHS. You could be an agency worker, in which case there are different rules for agency workers – it’s the same with locum doctors.

Also, if you’re doing bank hours, there are different lenders and criteria around that. That’s why we talk to you from the very outset to get that understanding of your income structure. It means we can position it with the lender that’s going to give you the best success of getting a mortgage.

Can I get a Buy to Let mortgage as a nurse?

Yes, absolutely. Standard rules apply around this – you will need a 25% deposit and meet the standard criteria around Buy to Let. There’s nothing unusual.

What if I have bad credit as a nurse – how does that affect getting a mortgage?

If you’re a nurse with bad credit it’s no different from any other occupation or applicant. It would be very much about understanding what that bad credit is and looking at the right lender for your circumstances.

At Tomorrow Mortgages we’ve got access to a huge array of lenders who will specialise in bad credit or slightly impaired credit. So there’s almost always going to be an option there for you. It’s just going to understand what that bad credit is and how it’s impacted you.

Are there any specific incentives or discounts available for nurses when obtaining a mortgage?

Lenders will potentially run incentives on their products from time to time. That might be cash back, free valuations or free legals. Different incentives run throughout the year.

The government incentives such as Help to Buy and key worker programmes have all stopped, but a number of new build developers will offer specific discounts to NHS employees.

It’s always worthwhile having a look around those if you’re looking to buy a new build. Ask whether there are any other discounts or any incentives available for key workers and NHS staff.

Does the process of applying for a mortgage as a nurse differ in any way?

There is no specific difference in the application process but the key part is exploring nurse income as it can be relatively complex.

It’s about getting a really good understanding so that when we do apply for a mortgage, we’re applying to the right lender. Then we have a really good chance of that mortgage being approved so you can buy that property or remortgage your home.

What financial planning considerations should nurses keep in mind when applying for a mortgage?

The key thing from a mortgage perspective, in terms of what a lender’s going to be looking at, is that variability of income. Are you going to take a promotion or have a change of role? Could impact those enhancements or overtime or is it going to stay fairly consistent?

When you move into any new property or remortgage, are there going to be any additional cost you need to factor in?

With all my clients, it’s not only about the income element. We will talk in depth about income, but it’s also about your budget and plans for the future. We want to understand if that mortgage is affordable now and in the years to come.

Financial planning considerations would come through in that. It’s something we would definitely cover off.

Can you explain joint mortgages and how they work for nurses?

It will be the same as any other joint mortgage application. If you have two NHS incomes, again, it would be about understanding the complexity around these and the variability.

We will choose a lender that will work for your situation and explain to them how your income is sustainable moving forwards. We’ll explain why they should lend to you. Other than that, it’s very similar to any other joint mortgage application that you would do.

What happens if a nurse’s employment circumstances change after obtaining a mortgage?

A lender can’t recall your mortgage because you’ve changed jobs or your circumstances have changed. That’s not going to happen.

But it is ultimately your responsibility to make sure you can afford to pay the mortgage back. Everyone’s circumstances do change – jobs change, things happen. Lenders are aware of that and if you can continue to afford the mortgage, that’s no problem.

However, if you are going to be facing any form of payment difficulty – perhaps your income has reduced significantly, for example, then it’s really important to work with your lender. Talk to us here and we will explain the options available to you.

What advice would you give to nurses who are considering applying for a mortgage?

For any member of NHS staff that I work with, it’s very much about talking about your income and how things can change.

If you’ve had a really busy few months with overtime enhancements, and your income has been quite high over that period of time, we need to look at whether that’s consistent. Is that going to give you a mortgage that is affordable moving forwards?

Variable income could impact how much money you could borrow from the lender. So a broker is key in terms of preparation, planning and understanding your options before you start doing anything – whether that’s remortgaging or buying a house.

Here at Tomorrow Mortgages we are really experienced in working with NHS members staff. We know what the lenders are looking for and how to position that mortgage to them. That will give you the best opportunity to get the mortgage that you ultimately want.

We’ll help you buy that dream home or remortgage your property to give you the monthly payments that work for you. That’s where we can make a real difference.

Your home may be repossessed if you do not keep up with your mortgage repayments.

The Financial Conduct Authority does not regulate most Buy to Let Mortgages.

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